Cannabis has made a name for itself in the business world with an industry worth more than $10 billion. With legalization of cannabis on the horizon, Canada’s MedReleaf Inc. is at the center of this booming market and is poised to benefit from its expansion in states like California if not expand faster. Industry leaders are optimistic about what lies ahead for this sector as it continues to grow steadily into 2019.,
The “quarterly results today” are in, and they were strong. The company also announced a new acquisition that gives them more reason to be bullish.
MAPS is a stock with a lot of upside potential.
If information is power, WM Technology Inc (NASDAQ:MAPS) will turn you become the world’s most knowledgeable marijuana consumer.
The business, which has been operating since 2008, is a major technology and software infrastructure supplier for the cannabis sector. WM Technology shares, on the other hand, just became public in June when WM Technology merged with Silver Spike Acquisition Corp. in a special-purpose acquisition firm initial public offering (IPO).
MAPS stock may be young, but analysts are optimistic about its prospects, with an average 12-month price objective of $18.75. At the current price of WM Technology, this implies a 37 percent potential near-term gain. Analysts’ highest estimate is $21.00, implying a potential gain of about 54%.
Why are so many people optimistic on WM Technology Inc?
As more states legalize recreational marijuana, the need for a network that links cannabis users, merchants, physicians, and brands has never been greater.
The main platform of WM Technology gives cannabis customers all the information they need to buy cannabis, including merchants, brands, strains, price, and how to place orders. (Source: WM Technology Inc, “About WM Technology,” accessed October 21, 2021.)
The cannabis industry’s go-to site is also the business. Point-of-sale, logistics, wholesaling, and ordering information are all included in its cloud-based software as a service (SaaS) and data package.
The “Weedmaps” listing service from WM Technology Inc links approximately 12 million monthly active users (MAUs) with over 4,000 paying businesses.
The Weedmaps website is simple to use for consumers. Local dispensaries, neighboring discounts, highlighted brands, best-ranked goods, and so forth are all listed. Users may get whatever information they need while on the move thanks to the companion app.
MAPS stock is simpler to find than the overwhelming majority of cannabis companies since it is listed on the Nasdaq.
Because cannabis is still illegal on a federal level in the United States, most marijuana stocks are unable to list on the Nasdaq. The Nasdaq, on the other hand, is open to businesses that aren’t engaged in “plant-touching,” such as WM Technology Inc.
WM Technology isn’t only focused on the United States, despite the fact that it is the world’s largest cannabis industry. The business also caters to Canadians, has operations in Spain, and is expanding its worldwide reach.
WM Technology continues to grow its operations, products, and services in order to maintain its competitive advantage.
The business announced the acquisition of Sprout, a cloud-based marijuana customer relationship management (CRM) and marketing software startup, on September 21. (Source: WM Technology Inc, September 14, 2021, “WM Technology, Inc. Acquires Leading Cannabis CRM & Marketing Platform Sprout.”)
Cannabis shops and brands in the United States, Canada, and Puerto Rico utilize Sprout’s platform.
Consumer relationship management, text/email marketing, loyalty programs, mobile wallets, QR codes, mobile surveys, mobile discounts, sophisticated customer segmentation, and analytics are all part of Sprout’s cannabis CRM platform.
“With the acquisition of Sprout, we are one step closer to achieving our goal of offering an all-in-one seamless and integrated solution for running, managing, and growing one’s cannabis company,” said Chris Beals, CEO and chairman of WM Technology. Ibid.) (Source: Ibid.)
Excellent Q2 Results
WM Technology’s bottom line will benefit from the purchase of Sprout, which is currently performing well.
The business reported that sales grew by 21% year over year to $46.9 million in the second quarter. (WM Technology Inc, August 12, 2021, “WM Technology, Inc. Reports Second Quarter 2021 Financial Results and Affirms 2021 Outlook.”)
WM Technology Inc’s second-quarter revenue increased by 55 percent when adjusted to exclude income from Canada-based retail operators who failed to submit proper licensing information and were subsequently removed from the Weedmaps marketplace.
The company’s monthly active users (MAUs) grew by 75% year over year to 12.3 million. Its average monthly revenue per paying customer rose by 24% to $3,706 per month.
The average monthly paying customers of WM Technology Inc fell by 2% year over year to 4,221. WM Technology’s average monthly paying customers rose by 28% after excluding data pertaining to Canada-based retail operators who failed to submit proper licensing information.
The business announced a second-quarter net income of $16.8 million, or $0.07 per share, up 79 percent from the $9.4 million in the second quarter of 2020.
The company’s adjusted profits before interest, taxes, depreciation, and amortization (EBITDA) were $8.5 million, down from $10.4 million the previous year.
WM Technology Inc had $91.7 million in cash and $47.23 million in total debt at the end of the second quarter.
The company’s management anticipates total sales of $205.0 million and adjusted EBITDA of $50.0 million for the entire year.
StockCharts.com provided the chart.
For those who don’t want to invest directly in the marijuana business, WM Technology Inc is a great cannabis stock to consider.
The business has a strong financial sheet, is profitable, and has lately recorded double-digit sales growth. It also has a rising number of paying customers and users.
Furthermore, for 2022 and beyond, the business has been investing in a variety of product-driven growth prospects and new market openings.
All of this is good news for WM Technology’s stock price.
- q3 results 2021